OMM Newsroom
Azerbaijan will introduce new subsidy and state support mechanisms for agricultural producers. Additional assistance is planned for farmers using modern irrigation systems, as well as for orchards, livestock farms and greenhouses.
“Operative Information Center-OMM” reports that Agriculture Minister Majnun Mammadov announced the measures at a panel discussion on “State support mechanisms in agriculture” held as part of the Agribusiness Festival.
Subsidies of 400 manats per hectare
According to the minister, farmers previously received a subsidy of 200 manats per hectare for land cultivated with rain-fed, surface or conventional irrigation. Under the new mechanism, the amount will rise to as much as 400 manats per hectare for land in specialized districts where modern irrigation systems are used.
The same mechanism is already being applied in the liberated territories, he said.
Mammadov noted that the mechanism has been in place in the liberated territories for two years. In view of the results, it will be rolled out in other regions starting next year.
Additional subsidies for wheat producers
Farmers producing food-grade wheat in specialized districts using modern irrigation systems will receive an additional subsidy of 100 manats per tonne.
The payment will be made after laboratory testing confirms the wheat is food-grade and it has been delivered for processing.
Additional subsidies are also planned for other producers who do not use modern irrigation systems. Farmers in specialized districts who deliver food-grade wheat to processing facilities will be eligible for an additional 50 manats per tonne.
Orchards to receive support of up to 20,000 manats
Orchard farms are another target of the new support mechanisms.
One-off subsidies are planned to encourage the planting of different fruit varieties in the liberated territories and Nakhchivan.
The minister said support in this area could range from 2,000-3,000 manats per hectare to as much as 20,000 manats.
Higher discounts on farming equipment
New discounts are also planned for agricultural machinery, modern irrigation systems, trailers, covered storage facilities and silos.
The existing 40% discount is set to increase to as much as 50% in several areas.
For modern irrigation systems produced locally, the discount is expected to rise to as much as 60%.
New support for greenhouses
New state support mechanisms have also been developed for greenhouse farms.
A 20% state discount will apply to locally produced metal structures and glass.
Per-hectare subsidies are also planned, with the amount depending on the type of greenhouse.
Livestock subsidies to increase
New subsidy mechanisms are also planned for the livestock sector.
According to the minister, an annual subsidy of 500 manats is planned for each imported female animal. A subsidy of 800 manats would be provided for new-breed animals born from those animals and raised in Azerbaijan to support herd turnover.
Entrepreneurs establishing new farms will also receive additional support.
New dairy farms are planned to receive 1,500 manats per animal, while beef farms would receive an additional 1,000 manats per animal.
The minister said these payments would be introduced in addition to the existing 60% discount mechanism.
Artificial insemination subsidy rules to change
Changes are also planned to the subsidy mechanism for artificial insemination.
While a subsidy of 100 manats was previously paid for each calf born through artificial insemination, the amount is set to be reduced to 75 manats.
However, a 150-manat subsidy is planned for new animals born through artificial insemination from those animals and intended to increase the herd.
The new mechanisms aim to promote the use of modern irrigation systems, the delivery of produce for processing, new technologies and productive livestock breeds in agriculture.
